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Exam Questions Harvard Suggested Reading Syllabus

Harvard. Core economic theory. Readings and Exams. Carver, 1900/01-1902/03

Thomas Nixon Carver

 

 

For the academic years 1900/01 through 1902/03 the core course in economic theory at Harvard was taught by Thomas Nixon Carver. He was substituting for Frank Taussig, who later wrote that he had been “compelled by ill health to withdraw from teaching” (1901-03). [Chapter IX Economics (1871-1929) by The Development of Harvard University since the Inauguration of President Eliot, 1869-1929 Cambridge: Harvard University Press, 1930. p. 191].  

Schumpeter provided more detail: “We speak of nervous breakdown in such cases, which indeed are more frequent in the academic profession than one would infer from the general conditions of a professor’s life. He [Taussig] took leave and went abroad for two years, relaxing completely and spending one winter at Meran in the Austrian Alps, another on the Italian Riviera, and the summer between (1902) in Switzerland. Catastrophe was thus avoided, and in the fall of 1903 he was able to return to teaching and the editorship of the Quarterly Journal.” [Joseph A. Schumpeter, Chapter 7 “Frank William Taussig (1859-1940)” in Ten Great Economists from Marx to Keynes. p. 206.]

During the first term of 1903/04 Taussig resumed teaching the core economic theory course with Carver teaching the second term.  Beginning 1904/05 Taussig once again taught the course by himself.

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Economics 2.
Economic Theory in the Nineteenth Century
1900-01

Enrollment
1900-01

For Undergraduates and Graduates:—

[Economics] 2. Asst. Professor Carver.— Economic Theory in the Nineteenth Century.

Total 45: 6 Graduates, 15 Seniors, 16 Juniors, 5 Sophomores, 3 Other.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

 

Reading list [previously posted]  for the first term

 

ECONOMICS 2
[Mid-year examination, 1901]

  1. Define value and explain why one commodity possesses more value in proportion to its bulk than another.
  2. Explain the various uses of the term diminishing returns, and define it as you think it ought to be defined.
  3. In what sense does a law of diminishing returns apply to all the factors of production.
  4. State briefly Böhm-Bawerk’s explanation of the source of interest.
  5. What, if any, is the relation of abstinence to interest.
  6. Would you make any distinction between the source of wages and the factors which determine rates of wages? If so, what? If not, why not?
  7. Discuss the question: Is a demand for commodities a demand for labor?
  8. What is the relation of the standard of living to wages.
  9. Discuss briefly the following questions relating to speculators’ profits. (a) Do speculators as a class make any profits? (b) Are speculators’ profits in any sense earned?
  10. In what sense, if any, does the value of money come under the law of marginal utility?

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

 

ECONOMICS 2
[Final examination, June 1901]

Discuss the following topics.

  1. The bearing of the marginal utility theory of value upon the questions of wages and interest.
  2. The definitions of capital as given by Taussig and Clark.
  3. Clark’s explanation of the place of distribution within the natural divisions of economics.
  4. Clark’s method of distinguishing between the product of labor and the product of capital.
  5. Clark’s distinction between rent and interest.
  6. Böhm-Bawerk’s theory of the nature of capital.
  7. The origin of capital, according to Böhm-Bawerk and Clark.
  8. The meaning of the word “productive” in the following proposition: “Protection is an attempt to attract labor and capital from the naturally more productive, to the naturally less productive industries.”
  9. The incidence of tariff duties.
  10. The theory of production and the theory of valuation as the two principal departments of economics.

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 5, Bound volume: Examination Papers, 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 23-24.

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Economics 2.
Economic Theory
1901-02

Enrollment
1901-02

For Undergraduates and Graduates:—

[Economics] 2. Asst. Professor Carver.— Economic Theory.

Total 32: 5 Graduates, 6 Seniors, 17 Juniors, 2 Sophomores, 2 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1901-02, p. 77.

ECONOMICS 2.
1901-1902

General Reading. Prescribed.

Marshall. Principles of Economics.
Taussig. Wages and Capital.
Böhm-Bawerk. Positive Theory of Capital.
Clark. The Distribution of Wealth.

References for Collateral Reading. Starred references are prescribed.

I. VALUE.

1. Adam Smith. Wealth of Nations. Book I. Chs. 5, 6, and 7.

2. Ricardo. Pol. Econ. Chs. 1 and 4.

3. Mill.          “        “     Book III. Chs. 1-6.

4.  Cairnes     “        “     Part I.

5.*  Jevons. Theory of Pol. Econ. Chs. 2-4.

6.   Sidgwick. Pol. Econ. Book II. Ch. 2.

7.   Wieser. Natural Value.

8.* Clark. Philosophy of Wealth. Ch. 5

II. DIMINISHING RETURNS.

1.    Senior. Pol. Econ. Pp. 81-86.

2*.  Commons. The Distribution of Wealth. Ch. 3.

III. RENT.

1.   Adam Smith. Wealth of Nation. Book I. Ch. 2. Pts. 1-3.

2.* Ricardo. Pol. Econ. Chs. 2 and 3.

3.   Sidgwick. “     “       Book II. Ch. 7.

4.   Walker.     “     “       Pt. IV. Ch. 2.

5.   Walker. Land and its Rent.

6.  Hyde. The Concept of Price Determining Rent. Jour. Pol. Econ. V.6. p. 368.

7.  Fetter. The Passing of the Old Rent Concept. Q.J.E. Vol. XV. P. 416.

IV. CAPITAL

1.   Adam Smith. Wealth of Nations. Book II.

2.   Senior. Pol. Econ. P. 58-81.

3.   Mill.        “       “       Book I. Ch. 4-6.

4.   Roscher. “      “       Book I. Ch. 1. Secs. 42-45.

5.   Cannan. Production and Distribution. Ch. 4.

6.   Jevons. Theory of Political Economy Ch. 7.

7.  Fisher. What is Capital? Economic Journal. Vol. VI. P. 509.

8.  Fetter. Recent Discussion of the Capital Concept. Q.J.E. Vol. XV. P. 1.

9.* Carver. Clark’s Distribution of Wealth. Q.J.E., Aug. 1901.

V. INTEREST.

1.   Adam Smith. Wealth of Nations. Book I. Ch. 9.

2.   Ricardo. Pol. Econ. Ch. 6.

3.   Sidgwick.  “     “        Book II. Ch. 6.

4*.  Carver. Abstinence and the Theory of Interest. Q.J.E, Vol. VIII. P. 40.

5.    Mixter. Theory of Saver’s Rent. Q.J.E. Vol. XIII. P. 345.

VI. WAGES.

1.   Adam Smith. Wealth of Nations. Book I. Ch. 8.

2*. Ricardo. Pol. Econ. Ch. 5.

3.   Senior.       “       “      Pp. 141-180 and 200-216.

4.   Senior. Lectures. Pp. 1-62.

5.   Mill. Pol. Econ. Book II. Chs. 11, 12, 13, and 14.

6.   Cairnes. Pol. Econ. Part II. Chs. 1 and 2.

7. Sidgwick.  “       “      Book II. Ch. 8.

8.  Walker.     “       “      Part IV. Ch. 5.

9.  Hadley. Economics. Ch. 10.

10*. Carver. Wages and the Theory of Value. Q.J.E. Vol. VIII, P. 377.

VII. PROFITS.

1.   Walker. Pol. Econ. Part IV. Ch. 4.

2.   Hobson. The Law of the Three Rents. Quar. Jour. Econ. Vol. V. P. 263.

3.   Clark. Insurance and Business Profits. Quar. Jour. Econ. Vol. VII. P. 40.

4*.  Hawley, F. B. in Quar. Jour. Econ. Vol. VII. P. 459; Vol. XV. Pp. 75 and 603.

5.    MacVane, in in Quar. Jour. Econ.,  Vol. II. P. 1.

6.   Haynes, in               “     “       “     Vol. IX, P. 409.

Source: Harvard University Archives. HUC 8522.2.1, Box 1 of 10 (Syllabi, course outlines and reading lists in Economics, 1895-2003). Folder: 1901-1902.

 

ECONOMICS 2
[Mid-year examination, 1902]

Discuss the following topics.

  1. The relation of utility to value.
  2. The price of commodities and the price of services.
  3. Various uses of the term “diminishing returns.”
  4. The law of diminishing returns as applied to each of the factors of production.
  5. Prime and supplementary cost: illustrate.
  6. Joint and composite demand and join and composite supply.
  7. Quasi rent.
  8. Real and nominal rent.
  9. Consumer’s rent.
  10. The equilibrium of demand and supply

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 6, Bound volume: Examination Papers, Mid-Years, 1901-02.

 

ECONOMICS 2
[Final examination, June 1902]

  1. State some of the different meanings which have been given to the law of diminishing returns, and define the law as you think it ought to be.
  2. Can you apply the law of joint demand to the wages fund questions?
  3. What is meant by an elastic demand and how does it affect monopoly price.
  4. Discuss Clark’s distinction between capital and capital goods.
  5. Under what conditions would there be no rent, and how would these conditions affect the value of products?
  6. Explain Clark’s theory of Economic Causation.
  7. What is the source of interest?
  8. What is the relation of the standard of living to wages?

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 6, Bound volume: Examination Papers, 1902-03. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Architecture, Music in Harvard College (June, 1902), p. 21.

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Economics 2.
Economic Theory
1902-03

Enrollment
1902-03

For Undergraduates and Graduates:—

[Economics] 2. Professor Carver.— Economic Theory.

Total 25: 5 Graduates, 8 Seniors, 7 Juniors, 3 Sophomores, 2 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1902-03, p. 67.

 

Course Description
1902-03

For Undergraduates and Graduates

[Economics] 2. Economic Theory. Mon., Wed., Fri., at 2.30 Professors Taussig [sic] and Carver.

Course 2 is intended to acquaint the student with some of the later developments of economic thought, and at the same time to train him in the critical consideration of economic principles and the analysis of economic conditions. The exercises are accordingly conducted mainly by the discussion of selected passages from the leading writers: and in this discussion of selected passages from the leading writers; and in this discussion the students are expected to take an active part. Lectures are given at intervals outlining the present condition of economic theory and some of the problems which call for theoretical solution. Theories of value, diminishing returns, rent, wages, interest, profits, the incidence of taxation, the value of money international trade, and monopoly price, will be discussed. Marshall’s Principles of Economics [4th ed., 1898], Böhm-Bawerk’s Positive Theory of Capital [1888; William Smart translation, 1891], Taussig’s Wages and Capital [1896], and Clark’s Distribution of Wealth [1899] will be read and criticized.

Course 2 is open to students who have passed satisfactorily in Course 1.

Source: Harvard University.  Faculty of Arts and Sciences. Division of History and Political Science Comprising the Departments of History and Government and Economics, 1902-03. The University Publications, New Series, No. 55 (June 14, 1902), pp. 40-41.

 

ECONOMICS 2.
1902-1903

General Reading. Prescribed.

Marshall. Principles of Economics.
Taussig. Wages and Capital.
Böhm-Bawerk. Positive Theory of Capital.
Clark. The Distribution of Wealth.

References for Collateral Reading. Starred references are prescribed.

I. VALUE.

1.  Adam Smith. Wealth of Nations. Book I. Chs. 5, 6, and 7.

2.  Ricardo. Pol. Econ. Chs. 1 and 4.

3.   Mill.          “        “     Book III. Chs. 1-6.

4.   Cairnes     “        “     Part I.

5.*  Jevons. Theory of Pol. Econ. Chs. 2-4.

6.   Sidgwick. Pol. Econ. Book II. Ch. 2.

7.   Wieser. Natural Value.

8.* Clark. Philosophy of Wealth. Ch. 5

II. DIMINISHING RETURNS.

1.  Senior. Pol. Econ. Pp. 81-86.

2.  Commons. The Distribution of Wealth. Ch. 3.

3*. Bullock. The Variation of Productive Forces, Q.J.E., August, 1902.

III. RENT.

1.  Adam Smith. Wealth of Nation. Book I. Ch. 2. Pts. 1-3.

2.* Ricardo. Pol. Econ. Chs. 2 and 3.

3.  Sidgwick. “     “       Book II. Ch. 7.

4.  Walker.     “     “       Pt. IV. Ch. 2.

5.  Walker. Land and its Rent.

6.  Hyde. The Concept of Price Determining Rent. Jour. Pol. Econ. V.6. p. 368.

7.  Fetter. The Passing of the Old Rent Concept. Q.J.E. Vol. XV. P. 416.

IV. CAPITAL

1.  Adam Smith. Wealth of Nations. Book II.

2.  Senior. Pol. Econ. P. 58-81.

3.  Mill.        “       “       Book I. Ch. 4-6.

4.  Roscher. “      “       Book I. Ch. 1. Secs. 42-45.

5. Cannan. Production and Distribution. Ch. 4.

6.  Jevons. Theory of Political Economy Ch. 7.

7.  Fisher. What is Capital? Economic Journal. Vol. VI. P. 509.

8.  Fetter. Recent Discussion of the Capital Concept. Q.J.E. Vol. XV. P. 1.

9.* Carver. Clark’s Distribution of Wealth. Q.J.E., Aug. 1901.

V. INTEREST.

1.   Adam Smith. Wealth of Nations. Book I. Ch. 9.

2.   Ricardo. Pol. Econ. Ch. 6.

3.   Sidgwick.  “     “        Book II. Ch. 6.

4*. Carver. Abstinence and the Theory of Interest. Q.J.E, Vol. VIII. P. 40.

5.   Mixter. Theory of Saver’s Rent. Q.J.E. Vol. XIII. P. 345.

VI. WAGES.

1.   Adam Smith. Wealth of Nations. Book I. Ch. 8.

2*. Ricardo. Pol. Econ. Ch. 5.

3.  Senior.       “       “      Pp. 141-180 and 200-216.

4.   Senior. Lectures. Pp. 1-62.

5.   Mill. Pol. Econ. Book II. Chs. 11, 12, 13, and 14.

6.   Cairnes. Pol. Econ. Part II. Chs. 1 and 2.

 7.  Sidgwick.  “       “      Book II. Ch. 8.

8.  Walker.     “       “      Part IV. Ch. 5.

9.  Hadley. Economics. Ch. 10.

10*. Carver. Wages and the Theory of Value. Q.J.E. Vol. VIII, P. 377.

VII. PROFITS.

1.   Walker. Pol. Econ. Part IV. Ch. 4.

2.   Hobson. The Law of the Three Rents. Quar. Jour. Econ. Vol. V. P. 263.

3.   Clark. Insurance and Business Profits. Quar. Jour. Econ. Vol. VII. P. 40.

4*.  Hawley, F. B. in Quar. Jour. Econ. Vol. VII. P. 459; Vol. XV. Pp. 75 and 603.

5.   MacVane, in in Quar. Jour. Econ.,  Vol. II. P. 1.

6.   Haynes, in               “     “       “     Vol. IX, P. 409.

Source: Harvard University Archives. HUC 8522.2.1, Box 1 of 10 (Syllabi, course outlines and reading lists in Economics, 1895-2003). Folder: 1902-1903.

 

ECONOMICS 2
[Mid-year examination, 1903]

Explain and illustrate any twelve of the following subjects.

  1. Marginal utility.
  2. Elasticity of wants.
  3. The law of diminishing returns from land.
  4. The extension of the law of diminishing returns to other factors than land.
  5. The law of economy of organization (Bullock).
  6. The law of varied costs (Bullock).
  7. The cause of rent.
  8. The law of rent.
  9. Quasi rent.
  10. Joint and composite demand.
  11. Joint and composite supply.
  12. Prime and supplementary cost.
  13. The relation of rent to the price of products.
  14. The effect of the shortening of the working day upon the demand for labor.

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 6, Bound volume: Examination Papers, Mid-Years, 1902-03.

 

ECONOMICS 2
[Final examination, June 1903]

  1. Explain the principal of marginal utility.
  2. Explain the law of diminishing returns and extend it to other factors than land.
  3. What is the relation of cost to value?
  4. What is the relation of rent to value?
  5. What is the relation of waiting to interest?
  6. What is capital?
  7. What is the relation of capital to wages?
  8. Explain joint and composite demand and joint and composite supply.
  9. Does the home consumer necessarily pay the whole of the tariff duty?
    Give reasons for your answer.
  10. Is the value of money determined in all particulars as the value of any other commodity?

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 6, Bound volume: Examination Papers, 1902-03. Papers Set for Final Examinations in History, Government, Economics, History of Religions, Philosophy, Education, Fine Arts, Architecture, Landscape Architecture, Music in Harvard College (June, 1903), p. 21.

Source Image: Thomas Nixon Carver, Harvard Class Album 1906.